Car Park clients increased revenue, on average, by 26.3 percent in 2023 while delivering a seamless, personalized, and positive customer experience
MINNEAPOLIS—May 15, 2024—Parking is a critical source of revenue for airports. Yet, many operators continue to rely on a one-size-fits-all approach to parking rates, often ceding revenue opportunities to public transportation and ride-sharing services. IDeaS, a SAS company and the world’s leading provider of revenue management software and services, announced today that Ace Parking at Phoenix Airport (PHX) has optimized revenue and operations through investments in its modern technology stack. Following the implementation of an online booking system in 2019, Ace Parking adopted IDeaS Car Park RMS to help them manage demand and maximize their parking capacity.
Air travel has rebounded smartly in the post-pandemic economy, and the need for easy, convenient parking at airports has risen. According to the 2023 Airport Economics Report, parking represents roughly 37 percent of all non-aeronautical revenue in North America, growing as travel and consumer activity increases. Car Park is another example of the IDeaS product portfolio’s diversification. As the company grows this segment, it continues to scale its investments accordingly. IDeaS also revealed an uptick in the need for its Car Park RMS product. Car Park clients, on average, grew revenue by 26.3 percent in 2023.
- Improved operational efficiencies: Positive results for Ace Parking at PHX include the ability to sell during low-demand and high-demand periods, helping the company generate new revenue. The team has also experienced operational efficiencies by combining IDeaS and its online booking system, resulting in revenue growth from pre-Covid peak levels by 55 percent.
- Providing an optimal customer experience: Parking is an essential service among a variety of options for travelers. Pre-book parking is the first step in establishing a direct relationship with the customer and providing a seamless, personalized, and positive experience. For example, a guaranteed preferred parking spot or a guaranteed price upfront helps airport and off-airport parking entities compete against rideshare competitors. Phoenix’s Ace Parking notes the software has helped shift demand to various facilities and achieve near-full occupancy without having significant spillover.
- Delivering effective discounts through dynamic pricing: The most common concern airports have before adopting revenue optimization technology is the perception that such strategies take advantage of “surge pricing” trends. Surge pricing increases rates in response to demand, while effective dynamic pricing discounts rates within a preset minimum and maximum window. As a result, travelers benefit from the best possible rate without discouraging travel due to surge pricing.
Shane Henning, general manager/director, Ace Parking Phoenix Airport, said: “IDeaS has helped us on our modernization journey through revenue and commercial management. From helping us understand how best to use our parking facilities to leveraging marketing and helping us evolve, IDeaS brings key insights and knowledge to help us succeed. The company has the most sophisticated analytics in the airport parking industry.”
Ryan MacLagan, director, Car Park global sales and account management, IDeaS, said: “The operational needs and revenue opportunities of airport parking share similarities with those of the hospitality industry. Both industries can significantly improve efficiency by adopting innovative solutions for managing demand and capacity. We are thrilled thrilled to see the incredible growth potential of the airport parking market and look forward to helping airport operators around the world deliver significant revenue increases to their organizations.”
About IDeaS
IDeaS, a SAS company, is the world’s leading revenue management software and services provider. Combining industry knowledge with innovative data analytics technology, IDeaS creates sophisticated yet simple ways to empower revenue leaders with precise, automated decisions they can trust. With 35 years of expertise serving hospitality, including hotel, event, and parking clients, IDeaS delivers revenue science to more than 30,000 properties in 158 countries around the world. Results delivered. Revenue transformed. Discover greater profitability at IDeaS.com.